In response to the slide in the rouble’s value, buy automakers, General Motors and Jaguar Land Rover included, decided to stop delivering to Russian dealerships.
The currency in Russia has been affected by the oil prices and the Western sanctions applied to Moscow because of its involvement in Ukraine, which made the rouble lose close to 20% against the U.S. dollar this week and around half of its worth since the beginning of 2014.
GM Russia announced that the volatility of the rouble exchange rate made the brand decide to temporarily suspend car wholesales to its Russian dealers. The British luxury carmaker, Jaguar Land Rover, stated that is Russian sales subsidiary stopped selling vehicles to franchised dealer on Wednesday and that they would look over their decision again on Friday.
Other auto brands also reacted. Volkswagen’s Audi confirmed that it decided to postpone car deliveries and that it may also raise prices. BMW said that it had begun to redirect new vehicles to markets doing better than Russia, where the car demand started going down since this summer and that it was also looking into adjusting prices.
Russia was expected to surpass Germany as Europe’s biggest auto market a few years ago but that did not happen and does not look to be taking place anytime soon as registrations are down 11.6% this year.
By Gabriela Florea